Interview: Wine.com Execs Talk Trends In The Delivery Market

A pioneer in the e-commerce space, online retailer Wine.com remains in growth mode 25 years after its founding. The company is present in 41 states and Washington D.C., and sells over 15,000 different wines as well as 2,000 spirits. Current year-to-date sales are above $200 million, down from the peak during Covid but up 50% compared with 2019. SND executive editor Daniel Marsteller caught up with founder Mike Osborn and CEO Rich Bergsund for an update.

SND: What current trends are you seeing in both domestic and imported wines?

Osborn: Since the beginning, Wine.com has sold more imported wines than other U.S. retailers. Most retailers’ sales break out to about 30% imports and 70% domestics. In 2019, imported wine represented 52% of our sales. This year, that grew to 58%.

France, Italy, and Spain led the growth, while California and Washington saw the most significant negative trends. Our customers enjoy discovering new regions, and we’re offering wines from more than 30 countries today. Regarding types of wine, between 2019 and this past year, red wine lost share to white, sparkling, and rosé, but the red wine category still accounts for 64% of our sales. The most significant gain for a variety came from Sauvignon Blanc, which now represents 4.7% of sales.

SND: How is the spirits portion of the business doing?

Osborn: We’re just three years into our experience with spirits. It’s currently nearly 5% of our business. Customers are discovering the breadth of our selection, resulting in a $58 average selling price per bottle. Whiskey is nearly half our revenue. Tequila represents the next largest category at 19%. Today, we offer spirits to customers in California, New York, and New Jersey, and we’re planning to add an additional state very soon.

SND: How does Wine.com’s demographic profile break down and where do you see room for growth?

Osborn: What stands out for us compared to the overall wine industry is our younger demographic and the average selling price. Millennials and younger represent 28% of our customers. They purchase wines with an average bottle price of $35. Gen X is our largest customer base at 38%, with an average spend of $34 per bottle. Boomers represent 30% and spend $29 on average, and those older than Boomers are 4% of customers and spend $26.

Bergsund: Gen Z, Millennial, and Gen X customers have grown to 60% of our revenue and 70% of our new customers. They’re looking for interesting wines and spirits with authentic stories from all corners of the globe. We find them through digital marketing and give them the confidence to try something new, sometimes based on our site content and sometimes with the help of a live chat with a somm.

SND: What recent initiatives are boosting the audience and engaging consumers?

Bergsund: The majority of Wine.com visits are now through mobile devices. Mobile has grown to 40% of our revenue. To be relevant to younger consumers, especially on weekends, you must have a quality mobile experience. We’ll keep investing there.

We also recently introduced a “Map View.” You can go to any list of wines and look for the map button where we represent the world of wine geographically. So far, we’re seeing that customers who engage with maps explore and buy more. Over the years we’ve accumulated a lot of data about wine and customer behavior. Our next big thing is to use today’s modern tools to put that data to work, personalizing the experience for our customers.

Tagged : Wine.com

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